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iTunes Ecology; a Media Futures case study
 

iTunes Ecology; a Media Futures case study

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presentation - Viable Futures: Apple iTunes media case study

presentation - Viable Futures: Apple iTunes media case study
The Media Futures Conference 2009
Friday 3 July at the Bloomberg Auditorium, London

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    iTunes Ecology; a Media Futures case study iTunes Ecology; a Media Futures case study Presentation Transcript

    • B eyo n d B ro a d c a s t , M e d i a F u t u re s C o n f e re n c e 2 0 0 9 F r i d ay 3 Ju l y 2 0 0 9 , B l o o m b e r g A u d i t o r i u m , L o n d o n viable futures th e i Tu n e s ( media) ecolog y Alexander Grünsteidl a g @ d i g i t a lwe l l b e i n g l a b s . c o m
    • 30 years ago the Sony Walkman was being sold for the first time. it started a revolution in portable consumer electronics profoundly changing the way we listen to music. ... 1979 1980 1990 2000 2009 ...
    • 2 years ago the iPhone was being sold for the first time exactly a year ago, 10 July 2008, the Appstore opened ... 1979 1980 1990 2000 2007 2008 2009 ...
    • ecology http://images3.realestate.co.nz/edi/genilnk001/photos/L11008-1.jpg
    • culture habit value
    • SUPERLATIVES Both Apple and the Media have been communicating about Apple in superlatives ...
    • 1,000 songs in your pocket
    • 600 million copies of iTunes jukebox installed
    • $ 0.99 Cost per song
    • 6 Billion Songs downloaded since April 28 2003
    • 21,170,000 number of iPhones sold to date
    • 1,000,000 number of iPhones sold weekend 19th June 2009
    • 1 Billion Applications downloaded
    • What is ONE million iPhones? one iPhone is 13mm = 13 km high stack
    • twenty million iPhones? = 260 km = London - Machester
    • What is ONE Billion ? one Pound coin is 3 mm thick = 3000 km = beyond Moscow
    • YOU Who owns an iPod ? Who owns an iPhone ? Who has paid more than £ 5 for an App ? Who has recommended an iPhone app to a friend ? Have you read a bookon a portable device ?
    • Me How’s the market place, especially retail changing ? How does this affect public places like the High Street ? Changing business models in demand - supply and value of discovery and recommendation ?
    • retail
    • 2003 A typical design brief
    • please design us an iPod !
    • iPod UI everywhere
    • iPod UI everywhere
    • Are you sure ...?
    • A typical design brief 2008
    • please design us an iPhone !
    • as designers we need to increasingly understand business models and how these are part of a culture of use.
    • what IS iTunes ?
    • seamlessly integrated ecology
    • seamlessly integrated ? 2000 iRiver iMP-100
    • CD ripping application application compression technology file and play list management internet browser network sharing Genius recommendation engine device and iPod synchronization cd burning internet radio stations
    • CD ripping application application compression technology file and play list management internet browser network sharing Genius recommendation engine device and iPod synchronization cd burning internet radio stations online store DRM copyright management seamless integrated webstore per song sales model, one click purchase podcasts movie rentals
    • CD ripping application application compression technology file and play list management Jan 2001 internet browser network sharing Genius recommendation engine device and iPod synchronization cd burning internet radio stations online store DRM copyright management seamless integrated webstore 2003 per song sales model, one click purchase podcasts movie rentals iPod family player hardware, massive storage Oct 2001 simple integrated UI design retrieval interface sexy product design exquisite materials
    • looking back
    • $6125 PC retail prices 3000 $3045 1981 IBM personal computer $2495 macintosh 2000 1000 100 1980 1990 2000 2010 ... professional consumer
    • PC retail prices 3000 2000 $1199 iMac 1000 100 1980 1990 1997 2000 2010 ... professional consumer
    • PC retail prices 3000 2000 1000 $600 iPhone 100 1980 1990 1997 2000 2007 2010 ... professional consumer $199 contract
    • centralized utility computer Personal Computing Digital Hub distributed computing
    • iMovie Digital Hub
    • iMovie 2000 Digital Hub The Napster surprise
    • iMovie iTunes
    • iMovie iTunes iPhoto
    • consumers are increasingly encouraged to become media creators
    • culture
    • WHAT media has changed from creating content
    • WHAT media has changed from creating content HOW to enabling consumption
    • <social objects>
    • <social objects>
    • <social objects>
    • <social objects>
    • identity + expression social object
    • music + friends sharing music http://misspinkslip.files.wordpress.com/2009/06/mixtape.jpg
    • building on existing behaviours -> shared playlists -> gifting
    • music + running introducing new technology behaviours -> social networking -> retail
    • iPod + customization iPods accessoires Loudspeakers lifestyle
    • lifestyle http://www.lovegroverepucci.com/collection-concerto-table.htm
    • how many features does the iPhone have ?
    • enabling lifestyles
    • habit
    • iTunes a central media experience seamless integration
    • iTunes a central media experience device manager
    • iTunes a central media experience coverflow interface
    • iTunes a central media experience internet browser & online store
    • iTunes a central media experience recommendation genius
    • iTunes a central media experience Apple Stores | iPod Bar
    • iTunes a central media experience iTV & home entertainment
    • 75% of all new cars come with iPod connectivity
    • iPod Shuffle 1000 songs 1 button simplicity through reduction
    • value
    • 59,132 number of apps in appstore to date
    • ...value?
    • B2B
    • http://www.mobclix.com/
    • apps in the appstore
    • apps in the appstore FREE 23% 77% PAID
    • apps downloaded 5-10%
    • apps downloaded FREE 5-10% PAID
    • units sold Blockbuster effect rank
    • units sold Blockbuster effect rank
    • App usage patterns http://www.appvee.com/blog/2009/04/the-most-comprehensive-iphone-app-sales-figures/
    • mental models
    • what is more valuable? access vs ownership http://arstechnica.com/microsoft/ news/2009/05/microsofts-next-apple- price-attack-zune-pass-vs-itunes.ars
    • customer perception of value OWN USE how much can one own and consume ? PAY per USE Subscribe ? ? rental
    • user behaviour will change OWN USE Bandwidth AccessibilitySubscribe PAY per USE Trust rental Customization
    • user behaviour will change OWN USE or is there an underlying PAY per USE cultural believe around Subscribe rental ownership ?
    • NIN Nine Inch Nails
    • NIN Nine Inch Nails music + game TapTap TapTap revenge downloaded by a third of iPhone users Free $ 5.00
    • NIN Nine Inch Nails music + socialnetwork • Blog updates and event news • stream music • download photos • upload their own remixes • multiple conversations with strangers at gigs, • locate other NIN fans in their vicinity Free
    • closed vertical integration ecology
    • ecology vertical integration regulated closed media platform
    • next time you: commission a project seek funding build an application or service ask yourself: 1. How does it relate to other elements in the ecology ? 2. Does a combination of existing elements enable new consumption behaviours ? 3. Can it become a new platform for an innovative culture of use ?
    • AppWall http://www.youtube.com/watch?v=ThTi4nPecNs
    • digital wellbeing labs ag @ digitalwellbeinglabs . com We tune technology to create harmony in your life. www . digitalwellbeinglabs . com
    • Sources: de-coding-iphone-3g-advertising-from-o2-in-the-observer <http://www.gomonews.com/de-coding-iphone-3g-advertising-from-o2-in-the-observer/> 50_of_2007_model_cars_sport_ipod_integration <http://www.metrics2.com/blog/2006/12/20/50_of_2007_model_cars_sport_ipod_integration.html> iPhone-appstore-secrets-pinch-media <http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media> longterm-usage-of-iphone-apps-is-only-one-percent-of-total-downloads <http://www.pocketpicks.co.uk/latest/index.php/2009/05/05/longterm-usage-of- iphone-apps-is-only-one-percent-of-total-downloads/> Bands Bypass iTunes With iPhone Apps <http://apple.slashdot.org/article.pl?sid=09/02/20/2059233> Bands-bypass-itunes-by-streaming-music-through-iphone-apps <http://arstechnica.com/apple/news/2009/02/bands-bypass-itunes-by-streaming- music-through-iphone-apps.ars> Apple’s Cool Matrix-Style App Wall <http://www.techcrunch.com/2009/06/08/apples-cool-matrix-style-app-wall/> 148Apps.biz | Apple iTunes App Store Metrics, Statistics and Numbers for iPhone Apps<http://148apps.biz/app-store-metrics/> CES: Analyzing the iTunes usage statistics - 1/10/2007 12:04:00 PM - EDN<http://www.edn.com/article/CA6406501.html> BBC - Newsbeat - Technology - Apple takes on 'old school' Nintendo<http://news.bbc.co.uk/newsbeat/hi/technology/newsid_7724000/7724366.stm> Timeline of Apple products - Wikipedia, the free encyclopedia<http://en.wikipedia.org/wiki/Timeline_of_Apple_products> What's the future of iTunes? - By Ivan Askwith - Slate Magazine <http://www.slate.com/id/2176117> Could the future of iTunes be digital software downloads? | Webware - CNET<http://news.cnet.com/8301-17939_109-9852097-2.html> Apple iPhone 3.0 Update: the Good, the Bad and the Still Missing | Analysis | iPodObserver<http://www.ipodobserver.com/ipo/article/ apple_iphone_3.0_update_the_good_the_bad_and_the_still_missing/> About Those iPhone App Store Revenue Numbers<http://www.techcrunch.com/2009/05/14/about-those-iphone-app-store-numbers/> App Store Rank-to-Sales Revealed<http://www.joelcomm.com/app_store_ranktosales_revealed.html> sales data GeoLogTag news<http://www.galarina.eu/GeoLogTag/News/Entries/ 2009/2/5_Sales_figures_from_the_dark_dungeons_of_the_App_Store.html> Forrester Research: Epic Terror of iTunes and Apple TV<http://www.roughlydrafted.com/RD/RDM.Tech.Q2.07/51A2CED5- D5C7-4053-9D3E-2A50A09F55DA.html> Longterm usage of iPhone apps is only one percent of total downloads | // Pocket Picks //<http://www.pocketpicks.co.uk/latest/index.php/2009/05/05/ longterm-usage-of-iphone-apps-is-only-one-percent-of-total-downloads/>